This work reports the procedure for selection of alloying elements to refine the microstructure of hardfacing Ni-Cr-B-Si-C alloys by providing in situ formed nucleation agents. It is concluded that the refining element should be able to spontaneously produce precipitates at high temperatures with little solubility in their Cr-rich counterparts. After exploring the theoretical backgrounds on how to select the refining element, Nb and Zr were selected and the phase formation reactions of Zr- or Nb-modified Ni-Cr-B-Si-C alloys were calculated using Thermo-Calc (R) simulations. Detailed microstructural analyses of the rapidly solidified samples deposited from the modified alloys showed that addition of Nb in specific quantities induces a significant microstructural refinement in the original Ni-Cr-B-Si-C alloy without deteriorating its high hardness. The Nb-modified alloy could be used to further investigate the viability of microstructural refinement as an effective toughening mechanism for Ni-Cr-B-Si-C and similar alloy systems. (C) 2013 Acta Materialia Inc. Published by Elsevier Ltd. All rights reserved.